IEEPA Tariffs to Remain in Effect Pending Accelerated Court Appeal

Wide-ranging tariffs President Trump has imposed under the authority of the International Emergency Economic Powers Act will remain in place for at least several more weeks, and possibly longer, raising the possibility that “reciprocal” tariffs could snap back to higher levels July 9 as currently scheduled.

The Court of International Trade ruled last month that the IEEPA tariffs imposed to date are unlawful and gave the federal government ten days to stop collecting them. However, the CIT’s  decision was immediately appealed to the Court of Appeals for the Federal Circuit, which paused the ruling’s effect while it considered a government request for a longer stay during the appeal proceedings.

On June 10 the CAFC approved that request, meaning the IEEPA tariffs (including both the “reciprocal” tariffs on imports from all countries as well as separate tariffs on imports from China, Canada, and Mexico) will continue to be collected. However, the CAFC also said that because this litigation presents “issues of exceptional importance” warranting expedited consideration, it will hold oral argument July 31 and the case will be considered by the full CAFC rather than the usual three-judge panel.

In a related case, the District Court for the District of Columbia went further than the CIT in ruling earlier this month that IEEPA doesn’t authorize the president to impose tariffs at all. That decision was also stayed pending an appeal to the CAFC. According to ST&R attorney Jason Kenner, the plaintiff in that case is seeking the same expedited briefing schedule that the CAFC has requested in the case discussed above.

ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering these and other import tariffs. For more information on which of these strategies might be most effective for your business, please contact ST&R.